re: New Olympus CEO fired after raising questions on $1.5B in hidden losses

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Don't disagree, but this seems like its a long-running (it said 1990s) and almost cultural issue (refer to link).

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True to an extent, much like the zombie banks have been treated over there and obviously there are more Japanese companies in which this scenario has occurred but not come to light.

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investing in MF itself, well, there's no fraud there.

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Not saying that explicitly, just extrapolating to excess risk taking continuing at financial firms. Where is the next blowout>>>

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gripe with international investing is definitely the reliability of the fins. You can't diversify away a lax/non-existent/openly corrupt regulatory environment such that exists to a large degree in those international areas.

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Precisely the point. Indexing will not prevent the risk, neither will active with supposed analysts in the areas. I say this and still have exposure, it's either bail or accept it for what it is. China and emerging mkt small cap, it's risky enough without the fraudulent reporting. Gold is starting to look better and better.